Wage differentials - Discrimination - Chapter 8
- Created by: sammilaw
- Created on: 23-02-16 16:50
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- Wage Differentials
- Chapter 8
- Negative Discrimination
- Leads to an individuals' perceived MRP as being lower that it really is
- Consequences:
- Lower pay
- Taking jobs that a lower than their qualified level
- Difficulty in finding work
- Limited supply for employer = higher production costs = lower international competitiveness = higher prices
- May not be considered for promotion or senior roles
- Opportunity cost of time and money spent on reducing discrimination
- Demand curve is more to the LEFT than it should be = lower wage
- Positive Discrimination
- Employers perceive a workers' MRP to be higher than it really is
- Demand curve is more to the RIGHT than it should be = higher wage
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